Confidence in RingCentral (NYSE:RNG) Shares by Morgan Stanley Fall.

RingCentral (NYSE:RNG) Receives a Downgrade

Shares of New York-listed RingCentral (NYSE:RNG) Have been downgraded by investment analysts at Morgan Stanley. Morgan Stanley downgraded their rating for the $1.79 billion market cap company to a “Equal-Weight” from their previous “Overweight” rating.

From a total of 10 analysts covering RingCentral (NYSE:RNG) stock, 12 rate it a ”Buy”, 0 a “Sell”, and 1 a ”Hold”. This means that 92% of the ratings are positive. The highest target price is $29 while the lowest target price is $20. The mean of all analyst targets is $25.8 with a 8.60% above today’s ($23.94) stock price. RingCentral was the topic of 13 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Oppenheimer maintained shares on December 16 with “Outperform” rating. Canaccord Genuity initiated RNG stock in a recent report from August 10 with “Buy” rating.

Approximately 972,226 shares of stock traded hands or 33.67% up from the average. RingCentral Inc (NYSE:RNG) has risen 50.62% since May 14, 2015 and is uptrending. It has outperformed by 52.89% the S&P500.

The overall sentiment of institutions has decreased to 1.63 in Q2 2015. Its down 0.30, from 1.93 in 2015Q2. The ratio fall, as 14 institutions have sold all the shares of RingCentral Inc that they owned while 37 funds have taken shares off the table. 25 funds have purchased shares for the first time while 58 added to their positions. These institutions now hold 41.75 million shares or 2.40% less than the 42.78 million shares they owned in 2015Q2.

The Fund 1492 Capital Management Llc currently is holding shares equating to 2.88% of its total portfolio in RingCentral Inc representing a total of 222,476 shares. Another fund,Alphaone Investment Services Llc, is holding a total of 293,190 shares equating to 2.26% of their holdings. Additionally, Westerly Capital Management Llc has a 90,000 share stake in RingCentral Inc which represents 1.96% of their total portfolio. The Fund, First Washington Corp, based out of Washington, has also built up a stake in the stock, which represents a total of 1.73% of their total portfolio. Finally S Squared Technology Llc, a fund which is based in the state of New York reported a total holdings of 78,500 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 9, 2015, shareholders of RingCentral Inc have witnessed 0 insider buys, and a total of 17 selling transactions equating to a net activity of approximately $12.08 million . Shah Praful sold 5,000 shares worth approximately $93,750. Sipes David sold 1,742 shares worth approximately $33,098. Makagon Kira sold 859 shares worth approximately $16,386. Marlow John H sold 1,130 shares worth approximately $21,556. The company insider Shmunis Vladimir sold 50,000 shares worth $1.00 million.

RingCentral, Inc. is a provider of software-as-a-service solutions for business communications. The company has a market cap of $1.79 billion. The Company’s products are RingCentral Office, RingCentral Professional and RingCentral Fax, which it sells as monthly subscriptions to its customers. It currently has negative earnings. The Company’s flagship product RingCentral Office is a multi-location, multi-user, enterprise-grade communications solution that enables employees to communicate through different channels and on multiple devices.

According to Zacks Investment Research, “RingCentral, Inc. provides solutions for business communications primarily in the United States. The Company’s products include RingCentral Office, RingCentral Mobile and RingCentral Fax. It provides solutions such as auto-receptionist, flexible extension structure, multiple voicemail boxes, smart call routing, business answering rules, extension dialing, call transfers and elegant integration with Smartphones. RingCentral, Inc. is headquartered in San Mateo, California.”